Sigma Corporation
 Date: 31 October 2023

Details:

• Raw materials inventory (rubber):
  • Cost: £36,000
  • Replacement cost: £34,000
• Finished goods inventory:

Product	Gamma	Delta
Direct costs	£65,000	£55,000
Proportion of fixed overhead	£18,000	£15,000
Proportion of selling costs	£4,000	£3,500
Net realizable value	£100,000	£85,000

• Office machinery:
   Acquired on 1 November 2018 for £260,000, depreciated over 10 years using the reducing balance method.
• Freehold property:
   Acquired 20 years ago for £2,800,000, land value estimated at £700,000. Buildings are depreciated over 55 years.
• Research and development:
  • Research costs: £290,000
  • Development costs: £430,000, benefiting over 5 years.

Required:
 Explain the financial statement impacts for Sigma Corporation as of 31 October 2023, considering these details.